The effects of a fat tax on Czech households and government revenues
|Author:||Bc. Tatiana Chudá|
|Year:||2014 - summer|
|Leaders:|| Petr Janský Ph.D.
|Work type:|| Bachelors
|Awards and prizes:||B.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good bachelors diploma thesis.|
|Abstract:||Health related food taxes have recently spread over the wor
ld as a tool for reducing obesity. Rising number of obese people and increased health care costs due to illnesses caused by
unhealthy diet represent a burden to the public sector. Taxation of an unhealthy food seems to be a good solution to this problem, as it is expected to increase the consumer price, thus
providing an incentive for the consumer to buy less of this food.
I use detailed Czech Statistical Office data to estimate the impact of fat tax on households ’expenditures and public
budget revenues in the Czech Republic. As I do not take into account the possible change of consumers’ behaviour, my estimates form the upper bound of impact of the tax. I simulate
three types of excise taxes – ad valorem, specific per kilogram of product and specific per kilogram of fat, so that they all raise the same budget revenues, and I compare their effects on
individual products and households.